• Notification Date: 19-02-2024
• Notification No: N/A

GST Demand Notice of Rs 170 crore issued to Star Health, Penalty of Rs 8.7 crore

Star Health and Allied Insurance Company Ltd on Thursday announced that it has received a tax demand order for Rs 170 crore, along with a penalty of Rs 8.7 crore on non-payment of GST liability on the re-insurance commission received by the company during the period April 2018 to March 2019.

“The company has received a demand order from the Office of the Deputy Commissioner (ST)-II, Large Taxpayers Unit, Chennai-35 under Section 73 of the Central Goods and Services Tax Act, 2017, February 14, 2024 alleging a total demand of Rs 170,67,13,561 and imposing penalty of Rs 8,67,25,664. The alleged demand and the impugned demand order pertains to non-payment of GST liability on the re-insurance commission received by the company during the period April 2018 to March 2019,” the company said in a regulatory filing. 
Star Health further stated that as per the advice of its tax advisors, the company will be filing “appropriate response or appeal to the said demand order within the prescribed timelines”. 

Per the company, it has a strong case against the levy of the demand, interest and penalty. However, it added that the outcome and  the related financial implications of the case cannot be predicted with certainty at this stage.

Earlier in January, the private health insurer’s profit rose 37.6 per cent year-on-year to Rs 289.6 crore in the quarter ended December. Gross written premium during the third quarter rose by 16.4 per cent to Rs 3,605.8 crore compared to Rs 3,096.7 crore a year ago. The net premium earned during the December quarter was up 7.1 per cent YoY to Rs 3,151.9 crore.